RemitFund has launched an investment fund called African Diaspora Investment Fund (ADIF).
Across several African countries, remittances from citizens abroad serve as an important part of GDP. A group of Africans in the diaspora have latched on to this reality and launched an initiative to transform this trend.
RemitFund, an award-winning non-profit, aims to leverage remittances flows for greater social impact on the continent, by enabling Africans in the diaspora to donate a percentage of their remittances to an investment fund. RemitFund has in view to tackle unemployment and underemployment in Africa by empowering Africans in the diaspora to build and invest in sustainable impact businesses that create jobs and foster development on the African continent.
ADIF is powered by donations from Africans abroad, allowing them donate a certain percentage of their remittances to the fund.The African Diaspora Investment Fund (ADIF) initiative will provide funding for African and African-diaspora led business. In particular, the fund targets businesses advancing critical areas of the United Nations Sustainable Development Goals (SDGs). These include businesses in the agricultural sector and renewable energy businesses.
Remittances in the traditional sense are a form of diaspora-driven development and provide a huge safety net for many families. We collaborate with African diaspora organisations and networks, money transfer operators and financial services providers to transform remittances into social investments that work for the continent’s advancement
said Grace Camara, RemitFund’s founder and executive director .
She also stated that without the prospect of sustainable and growing economies, remittances in their current form will not be sufficient to provide investments capable of curbing the “brain drain” of skilled Africans who struggle to find employment and so look for opportunities abroad.
If we do not start creating employment opportunities for Africa’s youth, dysfunctional migration will reach unprecedented levels. We must act now.
Originally launched in June 2018,the ADIF fund is expected to make its first investment in 2019. Like regular venture funds, ADIF will pursue deals in the form of equity and or debt financing.
But beyond the ADIF fund, RemitFund has its eyes set on further ambitions in 2019. RemitFund is looking to launch a crowd funding platform in 2019. It also plans to launch an African Fellowship for startups. Leveraging a network of tech hubs across Africa, the fellowship is scheduled for launch in later in the year.
Why is RemitFund Targeting Remittances?
Remittances is hugely important financial activity in Africa and across the globe. In 2016, $601 billion was transferred by over 250 million global migrants to their home countries. Sub Saharan Africa accounted for $39 billion of this sum, with Nigeria receiving over two-thirds of this sum.
Remittance equally serves as an important lifeline for Africans as it helps to support families’ livelihoods and businesses. However, due to the high levels of unemployment, many families are increasing reliant on these remittances.
How RemitFund will transform and identify businesses worth investing will go a long way to redefine impact investing on the continent.